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NHAI's Board Clears Land Monetization Policy to Part-Fund Land Acquisition Costs - Mr Sharma

Infra News - Published on Thu, 12 Sep 2019

Image Source: The_Hindu_Business_line
The Hindu Business Line reported that the board of National Highways Authority of India has cleared a plan to monetize its land parcels along highways to part-fund the huge land acquisition costs for building roads. Mr Ashish Sharma, Member Finance, NHAI said that the NHAI board has recently approved a land monetisation policy wherein, for highway projects near to urban areas, there will be highway influence zone which would be identified 500 metres on either side and transactions which will be recorded in that particular influence zone, a part of that will go into an escrow account which will be used to fund the land cost. That is an arrangement we are trying to work out with the States to optimize the land expenditure which we are incurring. We are going to apply the policy this year in some of the projects where value capture will become a key component of our financing policy.

Mr Sharma said that “Monetisation of land has become necessary because land was becoming a major component of our total expenditure. In fact, for the initial two years of starting the Bharatmala program, the expenditure on land was more than the expenditure on civil construction. Land was a major drain. Whenever a highway is constructed, the real beneficiary is the particular State and NHAI as such is realizing only on tolling so that is not the best way forward.”

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Posted By : Ratan Singh on Thu, 12 Sep 2019
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